As connectivity demands evolve, traditional telecom service providers (telcos) are reimagining their role in a digital-first world. Enter the techco transformation—a journey from being network-centric utility providers to digitally-native innovators.
In this blog, we'll explore what's driving this shift, the strategies powering the transition, and what it takes for telcos to thrive in today's rapidly changing market. From leveraging cutting-edge technologies like AI and open APIs to introducing new service offerings, uncover the steps telcos must take to unlock new opportunities, deliver exceptional value, and emerge as leaders in the era of digital transformation.
The journey begins with a fundamental shift in organizational mindset. Operators must move beyond being a commodity and simply providing connectivity to delivering revenue-boosting value-added services and expanding into other industry verticals. Achieving this transformation requires breaking down silos—not just in network architecture but also across operations and business support systems (OSS/BSS) and organizational structures. The goal is to become a true "provider for all." Incognito has actively addressed this challenge, most notably in our 2022 TM Forum Catalyst project using Open Digital Architecture (ODA).
TM Forum ODA is a new approach to building telecom industry software. Replacing traditional B/OSS systems, it transforms business agility, customer experience, and operational efficiency by creating simpler IT solutions that are easier and cheaper to deploy, integrate, and upgrade. By abstracting the complexity of access networks, overlaying value-added applications, and enabling the creation of more customer-centric products, ODA allows service providers to seamlessly align customer intent with the best network technologies available. The result? A simple, intuitive solution that meets customer needs while driving business growth.
This year, Incognito conducted industry research in partnership with Omdia on the application of Artificial Intelligence (AI) in network operations. The findings revealed that operators are prioritizing AI use cases such as observability, troubleshooting, and predictive maintenance. Strategically, operators aim to leverage predictive AI in the network layer while utilizing generative AI in the BSS layer. The research identified that the "lowest-hanging fruit" for AI adoption lies in areas with the most manual activities, where automation can accelerate transformation and significantly reduce OpEx. However, the success of AI initiatives hinges on two critical factors: data quality and automation—both of which are key strengths of Incognito. With Incognito's OSS solutions, service providers can take advantage of high-quality, centrally managed data and leverage it to enable policy-driven changes, event-based alerts, and closed-loop workflows. This empowers operators to fully capitalize on AI's potential to streamline operations, enhance efficiency, and drive innovation.
While infrastructure and connectivity are the commodity, the real opportunities for differentiation and innovation for service providers lie in value-added services. Consider the following strategies:
Ultimately, it's the quality of experience—not just the connectivity itself—that will define an operator's competitive advantage and support their transformation into a techco leader.
The adoption of 5G fixed wireless access (FWA) technology is accelerating for both consumer and enterprise services. A Tier 1 American mobile network operator is using Incognito's Digital Experience Solution to manage over five million 5G devices on its network using TR-369 – a number that's expected to grow to over 8 million by the end of 2025. This rapid onboarding is enabled by Incognito's cloud-based controllers, which dynamically scale up and down to meet network demands.
To address the optimization of SLAs and enhance the customer experience for SMBs, Incognito collaborated with Claro Brazil and other service provider champions in a 2023 TM Forum Catalyst project. The use case focused on delivering consistent service quality across multiple access networks, a critical requirement for SMB products. This was exemplified by a scenario where a video service maintains service continuity, even when an impairment or congestion occurs. By utilizing a Universal CPE with dual-access technologies, the service is switched from fiber to a 5G network slice when a performance issue is detected to avoid a drop in quality. This innovative approach eliminates the need for costly SD-WAN solutions, keeping prices low—essential in the SMB market. Claro Brazil projects a 62.5% growth in its SMB segment by adopting the architecture validated in the project, which enhances both OSS and network operations.
To support service providers in the techco transformation, introducing new offers like 5G private networks for enterprises is becoming a growing trend. Notable industry verticals adopting this technology to drive efficiency include manufacturing, mining, oil, and gas.
Globally, there is also a lot of momentum around the GSMA Open Gateway initiative, with great traction in CALA from operators such as America Movil, Entel, Telecom Argentina, and Telefonica. This initiative offers synergy with CAMARA APIs, which play a pivotal role in opening up partner ecosystems for further monetization and reducing the complexity of telco integration to not only 5G core but any access network.
In 2024, Incognito collaborated with Claro Brazil, GCI, NTT, and other leading global operators on a groundbreaking project surrounding 5G immersive experiences with quality on demand. Using CAMARA APIs, Open Gateway, and ODA technology, service providers can simplify the integration between marketplaces and connectivity to capitalize on the growing global Connectivity as a Service (CaaS) and Network as a Service (NaaS) markets, which are expected to reach a value of $155 billion by 2030, and evolve their business models.
Regarding cloud innovation, Incognito is empowering our customers on their telco to techco transformation with our cloudified OSS solutions, which are Red Hat OpenShift certified. Our DX USP solution for connected home management further enhances this transformation by utilizing container technology directly on consumer devices. This approach accelerates application deployment while eliminating the need for traditional agent-based solutions, streamlining operations and reducing complexity.
Lastly, with organizations seeking to reduce energy consumption, Mapping of Address and Port Using Translation (MAP-T) is gaining traction as a low-cost alternative to hardware-intensive CG-NAT. Incognito is readying telcos with the automated DHCPv6 configuration for MAP-T to scale their operations efficiently during their techco journey.
Incognito has approached this question with the consumer in mind. Consider regulatory requirements like those from Anatel in Brazil or the FCC in the USA, which mandate broadband performance reporting for speed and latency. This transparency fosters trust to consumers and increases competition.
In Australia, the ACCC requires broadband performance measurements to be compared against operators' advertised speed claims, with penalties for false advertising. Similarly, other regions have implemented customer-centric regulations:
These regulatory initiatives prioritize customer interests and hold operators accountable. Incognito's OSS solutions enable operators to meet these regulatory requirements while also innovating and serving their subscribers efficiently.
If you want to get started in your telco-to-techco evolution, contact our team today!